Norilsk Nickel: the longest corporate war in a leading Russian company

• Published in: The CASE Journal
• Main Authors: Kandinskaia, Olga, Dementieva, Alla, Khotyasheva, Olga
• Format: Article in Journal/Newspaper
• Language: English
• Published: Emerald 2019
• Subjects: Norilsk; norilsk
• Online Access: http://dx.doi.org/10.1108/tcj-08-2018-0098; https://www.emerald.com/insight/content/doi/10.1108/TCJ-08-2018-0098/full/xml; https://www.emerald.com/insight/content/doi/10.1108/TCJ-08-2018-0098/full/html

Theoretical basis In any company, there are conflicts of interest and different opinions on the business strategy. However, a well-established system of corporate governance allows us to minimise those conflicts and enables most disagreements to be solved in a civilised way. The case provides an opportunity to examine the specifics of corporate conflicts in Russia and improves decision-making skills with a view to increase business efficiency. Research methodology This descriptive case was written using the secondary sources from the Russian and foreign media, as well as other publicly available information about Norilsk Nickel. No information was disguised in any way. Case overview/synopsis This case study is a story of a dramatic corporate conflict at the Russian company Norilsk Nickel, one of the world’s leading producers of precious metals. In 2008–2012, the company went through a painful conflict between the majority shareholders (oligarchs Mr Potanin and Mr Deripaska) for the control over the business. The case of Norilsk Nickel was indeed a crucial case for Russia which helped define the “rules of the game”. In 2019, however, the situation looked prone to the escalation of the old conflict. The fact that from 2018 both oligarchs were under the US sanctions added further tensions. Complexity academic level This case is most appropriate for courses in corporate governance, business ethics and doing business in Russia at the undergraduate or graduate level. There is a sufficient number of extenuating circumstances to make for a good discussion of strategic and tactical factors in this type of a corporate governance decision analysis. The complexity of the case is a perfect illustration of the Russian business environment: it is never easy in the Russian business environment to figure out what is important and what is not.